NDIC gives update on payment of Heritage bank depositors

• The NDIC said that it is making plans to compensate depositors of the closed Heritage Bank who have above N5 million
• The corporation’s MD said it is working to ensure that depositors who have more than N5 million in their accounts will be paid
• He stated that the Corporation has also begun debt recovery as a safeguard against nonpayment

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Plans are underway, according to the Nigeria Deposit Insurance Corporation (NDIC), to compensate depositors of the closed Heritage Bank whose balances above N5 million.

NDIC MD stated that the Corporation has also begun debt recovery as a safeguard against nonpayment. Photo Credit: Eva-Katalin
Source: Getty Images

At the Financial Correspondents Association of Nigeria (FICAN) 2024 workshop in Lagos on Thursday, Bello Hassan, the Managing Director of NDIC, made this statement.

He said the corporation was making efforts to guarantee that depositors holding more than N5 million with the bank received payment through liquidation dividends.

As a precaution against nonpayment, Hassan said the Corporation has also started debt recovery.

”We are making a concerted effort to cover the assets in terms of physical assets and debts in liquidation dividends which have already commenced,” he said.

He claimed that the Corporation has paid almost all insured depositors when it came to the payment of insured deposits to depositors of the bank that was shut down.

”The only group of insured depositors that we have not paid are those with no alternate account and have not come forward to provide the alternate account so that we can pay them.”Also, insured depositors whose account is on post no debit order either by order of court or by regulatory agencies due to issues around fraud and Know-Your-Customer (KYC) have not been paid.”Once those orders are vacated, we are going to pay them,” he said.

Hassan gave his word that the Corporation would keep up all of its mandated efforts to maintain financial system stability.

According to him, the financial system's stability depends on confidence.

The News Agency of Nigeria (NAN) reported that the NDIC advertised the bank's assets for sale countrywide in an advertisement.

The auction of the bank's assets, which included machinery, cars, and office supplies, was announced by the NDIC in 62 different sites around the nation.

NDIC explains delay in paying

Legit.ng reported that the Nigeria Deposit Insurance Corporation (NDIC) has disclosed that account name differences in Bank Verification Numbers (BVN) linked to the alternative bank accounts of some Heritage Bank customers are delaying payment of their insured deposits.

The managing director of NDIC, Hassan Bello, disclosed this in an interview with the News Agency of Nigeria (NAN).

The NDIC boss said the corporation had paid a substantial amount to depositors of the failed bank without BVN issues.

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Source: Legit.ng